Medicare Part D
Part D in 2027: The $2,400 Cap in Williamsport, PA
# A Plain-Language Guide to Medicare Prescription Drug…
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Key takeaways
- In 2027, Medicare Part D has three phases (deductible, initial coverage, and catastrophic), since the old coverage gap, or "donut hole," was eliminated in 2025.
- Once you reach the out-of-pocket cap ($2,100 in 2026, $2,400 in 2027), you pay $0 for covered drugs for the rest of the calendar year.
- The Medicare Prescription Payment Plan is a free, optional program that lets you spread drug costs into level monthly payments instead of paying it all at the pharmacy.
- Higher-income beneficiaries with incomes above $109,000 (single filer) pay an extra IRMAA surcharge on top of their standard Part D premium.
WILLIAMSPORT, Pa. — If you take prescription medications, Medicare Part D is the part of the program that helps pay for them. And in 2027, Part D looks meaningfully different than it did just a couple of years ago. There's a new out-of-pocket ceiling, a simpler structure, and a payment option that can smooth your costs across the year.
Here's a plain-English walk-through of how Part D works in 2027, written with Williamsport-area readers in mind.
The Big Picture: Three Phases, Not Four
For years, Part D had four stages, including the dreaded "donut hole" coverage gap. That gap was eliminated in 2025, so in 2027, Part D has just three phases:
1. The deductible phase — You pay the full negotiated price of your drugs until you meet your plan's deductible. 2. The initial coverage phase — You pay a copay or coinsurance, and your plan pays the rest. 3. The catastrophic phase — Once you hit the annual out-of-pocket cap, you pay $0 for covered drugs for the rest of the calendar year.
That's it. No more coverage gap to worry about.
The 2027 Numbers You Should Know
Two figures set by Medicare drive how Part D works in 2027:
- Maximum deductible: $615 in 2026 ($700 in 2027). No Part D plan can charge a deductible higher than this. Some plans set a lower deductible, or none at all, but $615 in 2026 ($700 in 2027) is the legal ceiling.
- Annual out-of-pocket cap: The Part D out-of-pocket cap is $2,100 in 2026 and $2,400 in 2027. Once your out-of-pocket spending on covered prescription drugs reaches that amount in a given year, you pay nothing more for covered drugs for the rest of that year.
The cap ($2,100 in 2026, $2,400 in 2027) is a big deal, especially for people on expensive specialty medications. Before 2024, there was no true cap at all.
The Medicare Prescription Payment Plan
Even with the cap ($2,100 in 2026, $2,400 in 2027), a single pharmacy bill early in the year can still sting. That's where the Medicare Prescription Payment Plan comes in.
This is a free, optional program. Instead of paying a big drug cost at the pharmacy counter, you can spread your out-of-pocket costs across the remaining months of the year in level monthly payments made directly to your plan. It doesn't lower what you owe — it just smooths the timing.
You can opt in through your Part D plan. If your drug costs are high or unpredictable, it's worth asking about.
What This Means in Williamsport
Williamsport is in Lycoming County, and Part D plan availability — both stand-alone drug plans and Medicare Advantage plans that include drug coverage — is set at the county level. That means the menu of options a neighbor in another county sees may be different from yours.
The rules above, though, are the same nationwide. The $615 maximum deductible, the cap ($2,100 in 2026, $2,400 in 2027), and the three-phase structure apply to every Part D plan sold in Lycoming County.
To compare the plans actually offered here, use the Plan Finder at Medicare.gov and enter your Williamsport ZIP code along with the medications you take.
A Word About IRMAA
Most people pay only the standard Part D premium set by their plan. But higher-income beneficiaries pay an extra amount called IRMAA (Income-Related Monthly Adjustment Amount) on top of that premium.
For 2026, IRMAA surcharges begin at incomes above $109,000 for a single filer (higher for joint filers). Social Security uses your tax return from two years earlier to figure this out. If your income has dropped since then — say, because you retired — you can ask Social Security to reconsider.
Key Dates to Circle
- October 15 – December 7, 2026: Medicare's Annual Enrollment Period. This is when you can join, switch, or drop a Part D plan for 2027 coverage.
- January 1 – March 31: Medicare Advantage Open Enrollment. If you're in a Medicare Advantage plan, you can make one change during this window.
Your plan can change its formulary, pharmacy network, and cost-sharing every year. Even if you like your current plan, it's worth a quick review each fall.
By the numbers
Medicare Part B premium, 2006–2026
The standard monthly Part B premium has climbed from $88.50 in 2006 to $202.90 in 2026. Hover any point for that year’s premium.
Source: CMS. Standard premium shown; in some hold-harmless years many existing enrollees paid less. Confirm at Medicare.gov.
By the numbers
How people get Medicare in Lycoming County
(MA penetration in Lycoming County)
MA penetration from CMS enrollment data; Medigap share is an estimate. U.S. average is about 54% Medicare Advantage. These are area-level figures, not plan-specific.
Prescription coverage
How Medicare Part D works in 2027
The old coverage gap (“donut hole”) is eliminated as of 2025 (three phases now). There’s now a hard yearly cap of $2,100 in 2026 ($2,400 in 2027) on what you pay out of pocket for covered drugs, and you can spread those costs across the year with the Medicare Prescription Payment Plan.
Try it
How the 2026 Part D drug cap works
Slide to your estimated yearly prescription costs and see how the new $2,100 out-of-pocket cap protects you. This illustrates the standard Part D benefit; your plan may structure costs differently.
Once your out-of-pocket spending on covered drugs reaches $2,100, you pay nothing more for the rest of 2026. Confirm details at Medicare.gov.
Explore
When can you enroll? An interactive year
Enrollment windows are federal and the same nationwide. Confirm your personal dates at Medicare.gov or 1-800-MEDICARE.
Good to know
Frequently asked questions
Q: Do I have to sign up for Part D if I don't take any prescriptions?
Q: Does the $2,100 cap include my monthly premium?
Q: What if I can't afford my prescriptions even with Part D?
- CMS — Medicare Part D program rules (medicare.gov)
For personalized answers, contact Medicare.gov, 1-800-MEDICARE, or your local SHIP.